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tv   Your Money  CNN  June 2, 2013 12:00pm-1:01pm PDT

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economy would sink president obama in the last year's election, but the economy is making a comeback, and is the president immune to the controversy swirling around the obama administration? "your money" starts now. in 2012, republicans attacked the so-called obama economy. but now the economy is rewriting that script. i'm christine romans. this is "your money." a.p. phone records, irs targeting conservative groups, bengha benghazi. but the economy is stronger than the d.c. talk is letting on. >> there's a lot of reasons for us to feel optimistic about where we're headed as a country. >> obama's economy, the sequel. today, stocks are soaring to record highs. home prices are rising. the unemployment rate is falling. and your confidence in this economy is the highest it's been in five years. but none of that was in the republicans' script for this movie. in the run-up to the 2012
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election, they promised a horror show. >> obama-nomics is not working. >> under the president's policies, millions of americans have been buried. they have been crushed. >> despite the warnings, voters bought a ticket for another four years of the president's policies. but now, an improving economy is the background music in washington, and the plot line has turned to other controversies. >> my question isn't about who's going to resign. my question is, who is going to jail over this scandal? >> the obama administration under attack as questions surround its handling of the benghazi attack. journalist phone taps, and irs audits targeting conservative groups, but could the economy the republicans hoped would sink the president in 2012 now be the reason he appeared impervious to gop attacks? >> mark is here, don is a member of president obama's national
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finance committee, and my colleague john berman is the host of early start on cnn. mort, i want to start with you. in 2008, you supported president obama's campaign the first time around. the second time around, you called the president's policies, quote, our economic katrina. are you ready to give him credit for what we're seeing in the markets, the economy, the recovery we're seeing today? >> let's just assess what is going on in the economy. we've had four years of the most stimultive fiscal and monetary policy in our history. we have a trillion dollar deficit. we he a trillion dollar a year investment in monetary policy. >> that's the fed. >> that's the fed, nevertheless, that's encouraged by the white house, and we're sitting in a country where for the last four years we have averaged a gdp growth of 2%, maybe 2.1%. in previous seven previous recessions in the four years coming out of a recession, we averaged 4.2% growth. with way more monetary stimulus,
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we're growing at half the rate. that's not an adequate recovery for the dent we're accumulating that we're going to have to deal with. >> the president said on friday we're making progress, but we're not making enough progress for regular families. he doesn't count progress in stock market highs and for the top folks, the top earning folks doing well. it's the middle, the regular folks that he's still were aed about. what do you think about that? >> it's another way of just trying to make a political point out of this thing and using the divisiveness of politics, attacking the 1% or what have you. the issue is exactly the 24 million people in this country who have lost their jobs, who are out of work, who have part time work when they want to work full time, or have given up looking for a job. we never had that kind of level of unemployment in this country. that to me is the key issue and we're not making much of a dent in that in part because of the nature of our economy, and in part because frankly the failure of the policies of this
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government for the last four years. >> what policies do you say f l failed? >> in my judgment, okay, we should have had a major infrastructure program that would have at least as we did in the early part of the 20th century when we had the railroads that became a national transportation structure or the highway system, okay, that is interstate highway system. both of those, we had something to show for the money we spent, and secondly, you know, we had a dramatic difference in what that did to the gdp growth. we did not have those kinds of programs in place. i believe it was a good idea to try to do these kinds of programs. we just didn't do them well. i would have done a much larger infrastructure program particularly for airports and airplanes because that's the new method of transportation for goods and people. i would have done something for the patent office. i would have added these visas four years ago when these are people who create the high-tech industry and that's the best part of our economy. >> let me bring in don because
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he's talking about infrastructure build out and these new things but cuts in government spending cut down the growth. government spending decreased a 8.7%. we have forced spending cuts, a spirit if not actually doing austerity in washington. how is that hurting our helping what's going on here? >> i pretty much agree with most of what mort says. statistics say many different things. if we look at the job growth now, since this recession ended in june of 2009 and compared to the first 46 months of the end of the 2001 recession, our economy's produced 2.5 million more jobs in the same time period when comparative recessions. what is happening here though is the gdp, as you pointed out, is being brought down by a reduction, a significant reduction in government spending. so we're going to have to incur, frankly, i'm a believer the government should spend less money in entitlements, much more
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in infrastructure, less money in controlling health care costs and looking to pull back and take the private sector take more responsibility for our recovery. >> both of you are talking about long-term structural big plans. we know washington is incapable of doing that right now. we don't even have a budget. we're the biggest economy, the biggest business in the world, and we don't have a budget. instead, the conversation is about benghazi, the a.p. wire taps. these are legitimate questions to be asked. is that overshadowing progress on the economy. >> you listen to washington in the last few months, you would think these are the only things going on in the world. some republicans have even used the word impeachment, what is interesting is looking how it affected the president's poll numbers. the latest look is from quinnipiac which shows the president a tiny bit under water. his approval rating at 45%. that's a little lower than it was a month ago. maybe some impact there. but really, the most fascinating number we're seeing out of this poll is on the economy right now. where 26% of americans now say
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the economy is good or excellent. that may not sound like a lot to you, but that number is way, way up from a year ago and it keeps on improving and shows that americans are getting ever more confident by the day in the economy. so the question is, what's going on here? because usually you see these improvement economic numbers now, and that would boost the president's approval rating. there are two competing theories about what's going on. some republicans including mitt romney's former pollster say what is happening here is voters are delinking the economy from the president. those numbers that would normally boost his ratings are no longer boosting them. we may feel more confident about what's going on, but it doesn't mean we like our president more. >> it's interesting because during the election, some of the exit polling, they blamed the prior administrations for the economic collapse more than they blamed the president. maybe they're not giving him the credit as it's coming back as they didn't give him all the blame. >> the other theory is the economic numbers are propping him up. there are people suggesting that
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the scandals would be dragging him down if not for these positive economic numbers. and they may be creating this floor for the president that no matter what happens to him, they may not be able to lay a glove on him because americans do feel ever better about how things are going. >> we have more time to talk about this. mort, don, john, don't go away. up next, just in time for the summer blockbuster season, here comes obama care. could the signature achievement of the president's first term end up derailing the sequel? she got a parking ticket... ♪ and she forgot to pay her credit card bill on time. good thing she's got the citi simplicity card. it doesn't charge late fees or a penalty rate. ever. as in never ever. now about that parking ticket. [ grunting ] [ male announcer ] the citi simplicity card is the only card that never has late fees, a penalty rate, or an annual fee, ever. go to citi.com/simplicity to apply.
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it's coming, the bulk of obama care kicks in next year. starting in january, millions of americans who don't get health insurance through their employer can buy it through an exchange. those exchanges have online porters where you shop for a plan. next year, all citizens and legal residents must have health insurance or they'll pay a penalty, and firms with 50 or more full time employees are required to provide it. opponents say this is a jobs killer, it will cripple the economy, and republicans hope it wins them undeniable control of congress. the house has voted to repeal obama care 37 times. there will be more. now we have this irs controversy. the irs has the role in enforcing obama care so republicans say it's proof of more problems with health reform. has the irs become such a lightning rod politically that it helps the case that obama
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care is rushed, not well thought out, and it's going to be a disaster? >> i don't know, maybe i'm sort of out of this, but i don't think there's that much of a connection between the irs, the internal revenue service, and the scandal that has befallen that agency of the federal government, and obama care, those are two separate issues. the issue i have with obama care is that it implies that anybody with 50 or more employees is going to be mandated to have a certain kind of health coverage. but it's going to add a lot of cost to a lot of small businesses. so what are they doing? they're finding some way not to have 50 or more employees. restaurants, for example, they'll have part-time employees, let people go, avoid that additional cost because they can't afford it in what has been a relatively weak economy. i'm not sure while it accomplishes one thing, which i think is to the good, which is wider health care coverage, i just don't think it was
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affordable at this particular time on companies with 50 or more employees. >> motive good, timing terrible. some economists, don, we're going to talk about the evidence. they said they saw obama care in april's job report. they saw they saw a jump in part-time jobs. they say employers are going to go for part time workers. could health care derail the obama recovery or add to all of these people who are working and not getting really full-time wages? a third of the country makes $24,000 or less. >> but 97% of the small businesses in this country have more than 50 employees. so only 3% are going to be affected. and more than 70% of that 3% already provide some form of health care to their employees. businesses are innovative. they look for favorable tax treatment and shelters. i think many will do what mort says and convert people to part time. they'll create other entities to
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have their employees. but some will not. also, we're the wealthiest country in the world. and we should provide health care for our citizens. how we go about doing that, you know, is another story. but i don't see this as wrecking the economy. >> let's talk about how the public has embraced or not fully embraced it. a recent poll shows 54% of people surveyed oppose obama ca care. only 16% of republicans favor the law. we know implementation is happening differently in red states versus blue states. obama care, still the law of the land, but i'm not sure the fight is going to end. 37 times the house has voted to repeal this. >> you have two games going on and will go on for years. the political game and the what's best for the health of americans and the american economy game? >> why can't those be the same thing? >> they're in conflict. that's what's the problem. the white house will spend this summer trying to pump up this plan, to promote it. social media, personal appearances. the president is going to go
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hard on this to try to get as many people ready for enrollment in october when open enrollment begins. the success or failure depends on that. republicans, 37 votes, ready to repeal it, i'm sure you'll see more. more than that, you'll see them trying to hold up the implementation process wherever they can, funding issues, what not. the real problem here is that congress can't do anything on obama care. nothing is going to pass. usually with major legislation like this, you see modifications. you see tweaks as the plan gets rolled out. social security, medicare, you saw this. nothing is going to get tweaked with obama care because congress cannot pass anything on this right now. republicans and democrats just can't seem to get together. so there's no possibility of it getting any better at all whether you're for it or not. >> excellent perspective. quickly to both of you, just a letter grade on the economy as it is right now. you both have made your fortunes in this economy. don, letter grade. >> i would say a c-plus. >> what do you think? >> c-plus.
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>> good job, nice to see all of you. the housing market and stock market, two bright spots in our economy right now. up next, i'll tell you how to cash in on both at the same time. and you don't have to buy a house. protect your family... and launch your dreams. at legalzoom.com we put the law on your side. even in stupid loud places. to prove it, we set up our call center right here... [ chirp ] all good? [ chirp ] getty up. seriously, this is really happening! [ cellphone rings ] hello? it's a giant helicopter ma'am. [ male announcer ] get it done [ chirp ] with the ultra-rugged kyocera torque, only from sprint direct connect. buy one get four free for your business.
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so it's not a housing boom, but it is definitely a recovery. we have baunch of data this week that shows exactly what i'm talking about. home prices jumped 10.9% in march from last year according to s & pk schiller. you can see how far we have come from the big drop in 2009. realty track says the number of foreclosures fell 22% in the first three months of this year, compared to last year. but mortge rates are climbing. the 30-year fixed rate hit its highest level in a year. now averaging 3.18%. also new signs that housing may be turning into a seller's market. a survey finds a third of
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americans looking to buy a house have been on the hunt for more than a year. many are willing to compromise to close the deal, meaning things like price or location or items on wish lists are becoming less important. that's good for you sellers. of course, buying a home isn't the only way to invest in real estate. if you're smart about the housing market, you, too, can ride the recovery. home prices are rising, demand is back, but it's not just home buyers and sellers cashing in. when you buy a house, or build a house, you're fueling an entire industry and creating opportunities for investing. and not just in the real estate itself. >> consumers feeling better. their balance sheets are getting better. their home equity lines, they can take out more money. >> shares of low's, home depot, and william z ss-sonoma up 20% year. when stock charts look like this, is it too late to get in? maybe, but there are other places to cash in. >> if you own a home, it's a
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near certainty that you have a car. when people buy houses, they buy cars. now, the car industry has been doing very well lately. but there's still room, i think, for further growth. they're not expensive stocks. >> making stocks like ford, gm, honda, and toyota more attractive. there are also tiny components in your house. >> companies that make the chips, the microcontrollers that go into dishwashers, washing machines, garage door openers, they make those, they have a good global exposure and when housing improves, they're going to do better because more products are brought into the house. >> also ripe for the picking, supermarkets. >> as home ownership becomes bigger and more prevalent and grows, i think you'll see people eating in more. any grocery chain is likely to benefit. >> he likes walmart and whole foods. and an updated kitchen, new grill, spacious dining room
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entice homeowners to eat at home. if you don't want to buy a house but you want to buy into housing, that's how. all right, of course, do your own homework on all of these suggestions, the most obvious way to ride the recovery without owning property is something called a rete, or real estate investment trust. you buy into it like a stock and it returns you money. but like some of the popular housing related stocks, they're posting big returns this year, so maybe you've already missed a big run-up. >> the fed, led by monetary warrior ben bernanke has helped prop up the housing market and now you too can control interest rates and the printing presses at the central bank. introducing the federator, the wall street journal calls its game a cross between jet pack joy ride and the humphrey hawkins act. players take to the skies with a bald head, gray beard, and a cash dumping helicopter, but don't pull the lever too hard or you might just upset the inflation fish and threaten the fragile recovery. check it out, and fulfill that
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dual mandate. coming up, china is bringing home the bacon. it's buying a u.s. pork producer in what would be the biggest takeover ever of an american company by a chinese buyer. could your food safety be compromised, and is pork national security? we'll talk about that next. everyone's retirement dream is different; how we get there is not. we're americans. we work. we plan. ameriprise advisors can help you like they've helped millions of others. to help you retire your way, with confidence. ♪ that's what ameriprise financial does. that's what they can do with you. let's get to work. ameriprise financial. more within reach. there's a reason no one says "easy like monday morning."
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♪ it was the best day ♪ because of you [sigh] [echoing] we make a great pair. huh? progressive and the great outdoors -- we make a great pair. right, totally, uh... that's what i was thinking. covering the things that make the outdoors great. now, that's progressive. call or click today. china is on a buying binge, and it wants one of the last things still made in america. our food. i'm christine romans. this is "your money." call it china ink. chinese companies working with their government to buy resources around the world, ports, real estate, and now the u.s. food supply. this week, a chinese meatagreed smithfield foods. that deal valued at nearly $5 billion would be the biggest
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punchs ever of a u.s. company, lock stock and barrel, by a chinese buyer. it's just the latest example of china's buying spree in the u.s. chinese investment in the u.s. is headed for another record year. as of april, about $10 billion worth of deals were pending. last year, the record was nearly $6.7 billion. we already know china is the biggest foreign buyer of u.s. debt, holding $1.2 trillion in u.s. treasuries. now its government may be targeting u.s. properties. the manager of china's currency reserves is setting up offices in new york to set up, quote, alternative investments, equity, real estate, investments. china has an economic strategy. america lurches from one economic crisis to the next, they don't even have a budget. chiba has central planning, the united states has central bickering. how can we compete? peter navarro is an author of "death by china." ann lee is a professor at nyu
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and author of "what the u.s. can learn from china." peter, let's talk about the bigger picture of china, the u.s., and big business. you had a report that chinese hackers gain eed access to the u.s. assets. what is the biggest threat? >> both, when the chinese buy up our bonds, they're able to use their political power to stop us from, for example, not branding them a currency manipulator which has translated into the loss of 500,000 manufacturing jobs and 25 million people unemployed. that's a big threat. the hacking itself, i don't understand why we as a country would allow china to basically have their way with not just the pentagon but also our businesses and our homes. you know, if your neighbor came in at night and stole everything from your house every day, you wouldn't be real friends with that neighbor, but china, i mean, the latest reports --
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>> if the neighbor owns the mortgage on the house -- >> christine, the problem is, as you point out, look, we're getting deeper and deeper into debt with a country that does not have our best interests at heart. this is not canada, this is not great britain. this is not europe. it's a country which is growing the biggest military in the world to challenge us. and every day, it's hacking our pentagon and hacking our businesses. >> china, by the way, says it doesn't need to hack us. it can do all this stuff on their own and we're dilutional to think they would be getting anything from us. they don't need it. what can we learn from china? >> thompson routers just publishedpublish ed an article on may 31st that says the u.s. is the largest hacking country on earth. we do plenty of the same thing that china does, and this is really about the two elite groups coming together to work out what sort of rules of the game they want to abide by. but it would be very difficult
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for us to preach and tell them you can't do this if we're actually the biggest offender. so we need to have a strategy about how we want to approach this in a smart way. >> i think the thing that concerns the people of the pentagon is we have the military secrets to be stolen. there aren't military secrets to be stolen from china. the chinese eager to level the playing field. the u.s. eager to keep its own stuff inhouse. >> true, i would say we're more advanced in men aany of these things. let's not forget china also invests a great deal in r & d. and companies spend so much of their budget on r & d, they file more international patents than many other of their competitors and this is how they're able to dominate the telecom industry and beat out erickson. >> you talk about the rhetoric, the political -- different political cultures of the two
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countries. it's fascinating to watch as they last word from paranoid peter nuvarioy. >> more like outraged. >> ann lives in a very different world than the real world on this matter because the u.s. does not steal intellectual property from other countries. china excels at stealing intellectural property, whether it's weapons systems or google source code, or anything between, they're the biggest threat right now to this country in terms of our long-term economic future, and a lot of the reason is because companies like waway and others steal our stuff. for us to put up with that is outrageous. as outrageous is the stuff that comes out of ann's mouth on this issue. >> i'm going to leave it here and say the chinese government, the foreign ministry, and these chinese companies have said again and again that they do not do any of this. that's the response from those companies. >> never. >> and the government. even as --
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>> so many trite, predictable things coming out of peter's mouth, too. >> let's come back and discuss it again. >> this is fun. >> ann and peter, thank you so much. have a great weekend. so, it's not just chinese companies and the chinese government on a shopping spree. did you know that chinese citizens are also spreading their cash around the globe. they took eight times as many trips last year as they did in 2000. chinese citizens outspent every other country. richard roth here to explain. >> hello. that's right, summer weather has arrived in new york city after a chilly spring. and that also means tourist season. growing more visible on the street and tour buses, tourists from china. a country providing an increasing number of visitors to new york and the usa. >> it's hard not to run into chinese tourists on the sidewalks of new york. large chinese tour groups are everywhere and ready to spend.
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from lady liberty in new york harbor to the top of the empire state building, the chinese tourist is ever present. >> translator: we actually see new york city all the time in the movie and tv. and we really want to come here. >> how come you don't have a sign in mandarin saying beijing this wake? >> because it's right here in new york city with us. >> first, it was chinese business travelers. now relaxed visa rules and a strong economy back home brings bus loads full of vacationers. >> it's an incredibly growing market. over the last year, we have grown about 22%. >> so now we're driving to the east part of manhattan. >> 40% of all chinese visitors to america come to new york city. >> i love new york. >> we're on the east side, and this is the east river. >> every single chinese people have heard about new york. when they heard about america. so we just want to come and see it. >> would you be interested in
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buying a piece of the brooklyn bridge? i can sell you that. that is new york tradition. >> if i can, sure. l & l tours shows them a good time. ten years ago, tourists brought their own food and didn't want to buy anything. >> the purchase of power has grown dramatically. now we have the customers who are here to buy ipad, ipod, and different computers. and all of the luxury brands. >> oh, my gosh. i know that my friend spent $10,000 by shopping. >> luxury goods stores like tourneau make sure to have mandarin speaking employees. >> we spent key members of our marketing team to china in order to reach out to the different groups organizing tours to come to the united states. >> one u.n. study said the chinese spent $102 billion last year in their world travels, surpassing the u.s. and germany.
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>> it's going to make everyone happy. >> any final thoughts? >> welcome to new york city. >> stores and hotels here cater to the chinese clientele with special rooms on lucky floors and breakfast thrown in. shopping is number one. new york hasn't had any complaints about tourist behavior from the visitors, but this week in china, authorities were furious when a chinese school boy defaced a temple. they warned tourists against committed uncivilized behavior. they someday be more polite, they were told, and don't spit and don't talk too loud. that sounds like my neighbors in my apartment building tell me, but always good behavior when you go anywhere as a tourist. >> absolutely. so many of the ceos of the big leisure and hospitality companies just like the guy from torneau, they have been studying the rooms, the amenities to cater to the growing middle
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class there. so interesting. thanks, richard. >> the u.s. economy may be improving, but could today's recovery have a dark side tomorrow? and what's your role in it? find out next. ♪ stay in the groove with align. just like a tablet. so easy to use, it won a best of ces award from cnet. and it comes inside this beautifully crafted carrying case. introducing the all-new 2014 chevrolet impala with the available mylink system. ♪ [ beeps ] ingeniously connecting you to your life and the road. that's american ingenuity to find new roads. theit's four times the sony 4k tv, it wasdetail of hd. my eyes. and the road.
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americans with jobs but struggling with stagnant wages. is our consumer culture to blame? getting the best price may come at too high a cost, not only half a world away, but here at home. >> capitalism, meet your conscious. you're out for a bargain, but there's a high cost to chasing cheap. in places like bangladesh, the clothes we wear made by women paid with some of the lowest wages on the planet, working in
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some of the shoddiest factory buildings in the world, and here in the u.s., once secure jobs that paid americans a living wage and offered a hopeful future exported abroad. today, one third of u.s. workers make less than $24,000 a year. what's left for americans? increasingly, only low wage work with no benefits and no way to make a living. but that's not all. colleges, the most american of institutions historically open to all, now increasingly out of reach for many. 7 million students are bracing for a surge in their student loan rates. tuition skyrocketing when high paying jobs are dwindling. the one vehicle that helps generations of americans raise themselves out of poverty and build wealth in our society is now a pipe dream for too many. capitalism, this is your conscience speaking, are you listening? >> terry is a nationally syndicated financial columnist. elizabeth klein is the author of
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"overdressed, the shockingly high cost of cheap fashion." to feel more wealthy, this middle class on this illusion of grandtueur with all this debt w buying cheap manufacturing products. maybe your wages were stagnant, but you could still fill your house with stuff. maybe you had to borrow a bunch of money to send the kid to college, couldn't send them to college, but you could still finance a car. we're building this life based on help from around the world. now, more than 100 walmart employees across the u.s. are walking out. they also raised money to bring two bangladeshy workers to a meeting next week. they sell stuff to make the middle class feel better, but they're working under conditions most american middle class families wouldn't abide by. >> i read a book about the fashion industry, and what is
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shocking to me, as recently as 1990, we made half of our clothes in the united states. now we make 2% to 3% of the clothes in the united states. in the garment and textile industries, they're two of the fastest dying industries, and that job loss is felt acutely, and we don't make the connection when we walk into walmart and say i'm not supporting a job in my community or my own community, but we need to make those connections. >> i don't think they're really given a choice. sometimes people blame the middle class and say they like cheap, nthey want to live high n the hog, blah, blah, but you're not given a choice. it's not like you go to a store and you say, in this lane, you pay more but it's supporting a middle class job here or somewhere else. you can't go to lis lane and say it's made and the water isn't being poisoned. over here, you can pay cheap and somebody is going to die in the rubble of a bangladeshy factory. >> we shopped our way out of a choice. if you look back 20 or 30 years
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ago, we should choose between a domestically made product and one overseas. what we're seeing now is a turning point where there is actually an increase in domestically produced clothing. there are more ethicily sourced fashion trade brands. in the next couple years we'll see more fashion choices in the market and what is interesting to see is if consumers support it, and i think they will. i think we're actually at a turning point in this issue. >> terry, shopping, fast fashion, shopping at places like walmart, everyday low prices, that's helped americans have more when they're earning less. and that's what those companies say. you know, they say we make the middle class better and stronger because the middle class can have these things. is it as simple as that? is that the tradeoff we have made? >> well, the interesting thing is that's true. it's been true ever since the industrial revolution. we can make products more efficiently and less costry and free up resources of the family to work less and have more
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leisure or to have more things. so if you have less expensive clothing, that's a benefit to the american family. what i think elizabeth is correctly pointing out is we're in this fashion frenzy, this instant disposable fashion. and i agree that as we understand the drain on our resources and this frenzy of stuff we use, throw away, that goes out of style, we're actually financing with debt, that's not a positive thing. but let me point out, when we take a look at what going on in the factories in bangladesh, which we all abhor, we're 102 years here in america from that horrible tragedy, the triangle shirt waist fire that took place in a sweatshop in new york city wheregirls were making clothing at the same kind of low wages we saw now around the world. not to make it say it's right. what i'm saying is maybe as our conscience becomes more aware, we don't have to follow fashion
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frenzy. we will take advantage of the lower cost of things, but buy them more sensibly. >> and it's not about bailing out of bangladesh to go someplace cheaper, to rush and go to india and find new sources. it's about ficking the mess you made, big companies. that's the message. terry and elizabeth, nice to see both of you. coming up, your mom, your aunt bertha, even the president have told you about the importance of college. >> you're going to need more than just a high school education. to succeed in this economy. >> but if you're from a low-income family, how do you pay for it? we'll show you one solution next. ... wow, that is mmm... it's so mmm you might not believe it's a hundred calories. yoplait greek 100. it is so good.
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there was this and this. she got a parking ticket... ♪ and she forgot to pay her credit card bill on time. good thing she's got the citi simplicity card. it doesn't charge late fees or a penalty rate. ever. as in never ever. now about that parking ticket. [ grunting ] [ male announcer ] the citi simplicity card is the only card that never has late fees, a penalty rate, or an annual fee, ever. go to citi.com/simplicity to apply. there's a reason no one says "easy like monday morning." sundays are the warrior's day to unplug and recharge. what if this feeling could last all week? with centurylink as your trusted partner, it can. our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and dedicated support, your business can shine all week long.
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70% of students at elite colleges come from the top income bracket.
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they outnumber low-income classmates 14-1. so why aren't low-income students getting in to the best schools turns out they're simply not applying. >> i grew up in washington heights. she didn't grow up with much but she always excelled in school. >> my s.a.t. scores were around 1400s. >> reporter: but her small high school in the bronx had limited resources. >> we only had one school come and visit which was mercy college. so everybody in my class applied. and almost everybody got accepted. so we're just like, all right, well we have never heard of this school. but, i mean if they're all accepting us, i mean why not? >> reporter: according to a new study from the brookings institution, only 34% of top low-income students apply to the country's most selective colleges. that's compared with 78% of top high-income students. the college she went to though just wasn't the right fit. after her second semester she
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dropped out. >> i wanted to go back in just a few months after i left mercy but everything happened and i was working full time, i got pregnant. >> low-income high-achieving students thrive at very selective colleges and universities once they get there. whereas if they attend one of the nonselective post-secondary institutions that they tend to apply to, they have about a 50% chance of graduating on time. >> reporter: meanwhile, she's still paying off her loans. she says she didn't have enough information to make the best choice. >> i heard about scholarships and opportunities you could get so i would research, but there are so many out there so i never knew which one would fit me. >> for very high-eye cheefg low-income students, the more selective the college or university they attend the less they will pay. >> reporter: a lot less. the most competitive colleges have more resources and can offer more scholarships. so low-income students usually don't come even clothes close to paying that scary sticker price. >> i understood that i needed to
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go to school for free because my parents would not be able to afford it. >> reporter: he grew up in harlem. >> there were often shotouts while we were walking down the street. there was actually a drug factory essentially right across the hall from my apartment. >> reporter: he always dreamed of going to columbia university. >> i remember saying, i want to be here. i want to come to columbia. i think my mom chuckled at the time. >> reporter: thanks to the gates millennium scholars program, he was able to get that ivy league education for free. >> i don't have loans. i -- all i had to do was concentrate on my studies. >> it is important to apply to some of the most selective colleges you can get into if you are a low-income high-achieving student. narrow in on a set of colleges an apply to several. if you are a low-income student, can you get application fee waivers so you should not have to pay application fees. >> attending columbia has been the best experience of my life. i may live in harlem but i now
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understand harlem a lot better. >> he works for an organization helping kids get into top colleges like did he. and lorsbeth is going back to school and this time around will be applying for lots of scholars. paying back boston. restaurantgoers make good on their bills more than a month after the boston marathon bombings. make a wish! i wish we could lie here forever. i wish this test drive was over, so we could head back to the dealership. [ male announcer ] it's practically yours. test drive! [ male announcer ] but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a jetta. that's the power of german engineering. get $0 down, $0 due at signing, $0 deposit, and $0 first month's payment on any new volkswagen. visit vwdealer.com today.
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six weeks after the boston marathon bombings some business owners are hearing back from patrons that day. zain asher joins us with more. >> reporter: one restaurant
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owner i've spoken to says that he's gotten back nearly $1,200 from people who were dining at his restaurant who suddenly had to evacuate without warning. he says that since the attacks, people across the country have been calling him. they described where they were sitting when the bombs went off, what they ate and then, of course, the checks came rolling in. >> marathon day typically is the busiest day of the year. and we were full. >> reporter: with thousands of spectators crowded on to boylston street, wait staff were expecting to make a fortune. >> i was told it was as good as christmas, you could walk out from $500 to $1,200 in one day. >> reporter: those expectations suddenly cut short. >> you can feel the building shake. this building's never shook in 23 years. we didn't even think about collecting tabs or anything like that. we just had to make people get out of here. >> reporter: it wasn't until the
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restaurant owner came back to his establishment a few days later that he realized just how much he had lost. >> it was about $2,800, $3,000 that was out there in outstanding checks. >> hearing that bombs are going off, a hop skip and a jump away, really money is the last issue on your mind. >> reporter: a week later, a few honest customers started stepping up. >> the monday after, i started getting phone calls saying, you know, i was just there on monday. just calling to see if i can pay my tab. i said -- really. wait a minute. okay, hold on a second. they would go over the menu with me. >> the fact that people will call up and say, hey, i was in your establishment and we were evacuated, here's the money i owe you, we're like -- >> reporter: the owners says since the attacks he's gotten ten phone calls and several letters from customers across the country wanting to pay their bills. >> being a server in
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massachusetts we make $2.63 an hour. so they wanted to make sure that we were compensate. >> reporter: now they've made back about one-third of what they've lost. >> it's fantastic that people would be so kind to do that. >> makes you believe in this boston strong thing. they're good people. they outnumber these terrorists by a lost. >> reporter: the charles mark hotel located just two doors down from where the first bomb went off was also swarming with patrons that day. >> an unpaid bill is the last thing that we were thinking of. >> reporter: although their customers are also now calling to pay up, the hotel is saying this one is on them. >> what we said to them was thank you so much for that but why don't you just come back and we'll start fresh. >> i've never been more proud to be a bostonian. boston's just like a big family. >> reporter: christine, there were other restaurants on boylston street that did of course lose money. but with all the support coming back to the area, many say they've made the losses back several times over.
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christine. >> thanks, zain. thanks for joining the conversation this week on "your money." please fine me on facebook and on twitter. my handle is @christineromans. hello, i'm miguel marquez in for fredricka whitfield. here are the stories we're following in the "cnn newsroom." new victims from deadly storms in oklahoma. families who tried to find shelter in the storm drains were swept away in floods. the latest details next. coming up this week, the judge in the george zimmerman-trayvon martin is expected to make a couple more key rulings in the case. we'll talk to our legal analyst in a few minutes.

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